There has been a further increase in the number of landlords exiting the buy-to-let market, according to new research by the Residential Landlords Association (RLA).
A survey of more than 2,700 landlords show that almost a quarter of respondents have seen the demand for private rented property increase over the last three months, with 41% saying there had been no change. Just 15% said that demand has dropped.
With the study revealing that more landlords are selling properties than buying whilst demand continues to increase, the association is warning of a rented housing supply crisis ahead.
According to the research, over the next 12 months 31% of landlords plan to sell at least one property with just 13% saying they plan to buy at least one.
A shortage of private rented housing together with strong demand from tenants has led to rising rents across most parts of Great Britain.
ARLA Propertymark reports that rents in the UK’s private letting sector increased last month, albeit marginally, as the supply to let dropped again.
The RLA is now calling on the government to adopt pro-growth measures including abolishing the stamp duty levy on the purchase of additional properties where landlords add to the net overall supply of homes available, including bringing long term empty homes into use.
David Smith, policy director for the RLA, commented: “Those who argue that a smaller private rented sector is good for tenants wanting to buy a home are plain wrong.
“The government’s policies are choking off the supply of homes to rent whilst demand remains strong. This is only making life more difficult and potentially more expensive for those looking for somewhere to live.
“Without an urgent change of course and the introduction of pro-growth policies the situation will only become worse.”